By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks shot higher Friday,
as an overnight advance on Wall Street and a weakened yen combined
with upbeat industrial-production data to lift sentiment, while
other Asian markets also saw gains.
Japan's Nikkei Stock Average jumped another 3.3% on top of
Thursday's 3% rally, recording a climb of more than 30% in the
first half of 2013. The broader Topix improved by 3.2%, as the U.S.
dollar (USDJPY) advanced toward the Yen99-handle, with analysts
eyeing further weakness for Japan's currency.
A third straight day of gains for the Dow Jones Industrial
Average (DJI) on Thursday, amid fading fears the Federal Reserve
would cut its bond purchases, set the tone for a further advance in
Asian markets Friday.
"Yen volatility has been hard to handle, but after a big
washout, a clearer signal from the [U.S. Federal Reserve] and
evidence of declining volatility, there is a [case] for fresh short
positions," said Nomura strategist Jens Nordvig.
Data released Friday painted a mostly strong picture of economic
conditions in Japan, providing a further lift. Industrial output
for May saw a particularly robust gain, rising 2% to trounce
expectations for a 0.2% improvement.
Elsewhere, South Korea's Kospi climbed 1.2% after jumping 2.9%
the previous day, Hong Kong's Hang Seng Index added 1.4%, and
Australia's S&P/ASX 200 rose 0.3%.
China's Shanghai Composite rose 1.8% after a weak start, but was
set to end June with massive losses of close to 14%, after dropping
in 16 of the previous 18 sessions.
Trading was choppy amid lingering worries about the recent rise
in interbank money market rates and on slowing momentum in the
wider economy.
In a report released Friday, Barclays' head of China banks
sector May Yan said that during a recent visit to Beijing,
government-agency officials and think tanks indicated low
visibility on economic growth and that China may be heading towards
growth rate of 6.5%-7.5% in 2013, compared with the government's
target of 7.5%.
"Most banks believe the interbank-rate rise will spread to other
banking businesses," including wealth-management products, deposits
and loans, Yan said.
Stock gains in Shanghai were aided by a further rebound in most
banks from heavy recent losses, with property firms also rising.
China Minsheng Banking Corp. (CMAKY) climbed 2.8%, paring the loss
so far this week to 10.8%, while China Everbright Bank Co. added
1.5%, narrowing its weekly drop to 3.8%.
In Hong Kong, gains were spread wider, with China Life Insurance
Co. (LFC) rising 2.5%, China Overseas Land & Investment Ltd.
(CAOVY) gaining 3%, and personal-products maker Hengan
International Group Ltd. advancing 4.6%.
Among the notable movers in Tokyo, Japan Tobacco Inc. (JAPAF)
advanced 3.5%, steel maker JFE Holdings Inc. (5411.TO) climbed
4.2%, Sumitomo Mitsui Trust Holdings Inc. (SMFJY) soared 8.9%, and
real-estate major Mitsui Fudosan Co. (8801.TO) gained 4.2% in a
rally that touched most sectors.
Shares of Renesas Electronics Corp. (RNECY) jumped 4.2%, after
the chip maker said late Thursday it would withdraw from most of
its loss-making mobile operations, according to Kyodo News.
In Seoul, auto makers and financial stocks advanced, with
Hyundai Motor Co. (HYMTF) gaining 2.3%, and Shinhan Financial Group
Co. (SHG) rising 2.6%.
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